Customer credit risk scoring to safeguard receivables

Many indicators are needed to judge the health of a company: Its economic environment, market and sector trends, competitive performance. 
Then comes the study of the company's financial results such as the operating result (which gives indications on the company's profitability); the net profit...
Coface business information’s solutions provide you with all this very simply and quickly, on any company in the world.

Credit risk assessment requires multiple data points. With Coface, we analyze macro-economic context, sector trends, financial statements, and—critically—actual payment behavior. This payment behavior analysis draws on our experience as a credit insurer: we see which companies pay late, which don't pay at all, and which are heading for trouble.

The Coface Score is our proprietary risk scoring system: a 0-10 rating that indicates a company's probability of default within 12 months. Higher scores mean lower risk. Unlike generic credit scores, Coface's risk scoring combines financial data with real payment behavior from our trade credit insurance portfolio—data no one else has. This risk scoring methodology has been refined over 75 years of underwriting experience.

Coface Score evaluates the probability, over a 12-month period, of a company's ability to meet its financial obligations, including commitments to counterparties. This assessment considers various financial indicators, including financial stability, profitability, payment history and claims, and solvency ratios. Additionally, it incorporates qualitative data such as the company's current business conditions and management performance.

Credit risk can never be eliminated—but it can be managed. With proper credit risk monitoring, you can identify warning signs before they become write-offs. The Coface Score tells you the probability of default. Our monitoring alerts you when that probability changes. Combined, they give you the intelligence to extend credit confidently—or to tighten terms when needed.

Coface uses rich data, descriptive predicative and prescriptive risk data, micro and macro economic sector based and regional risk data, quantative and qualititive insight, etc.
Our data comes from our own claims experience, past trade payment performance, debt collection information and expert sector and country risk assessments.

Financial risk evaluation is crucial in business risk assessment as it helps identify potential financial challenges a company may face. This assessment considers factors like debt levels, liquidity, and profitability, aiding in sound risk management.

Credit risk assessment tools help you make consistent, data-driven decisions about who gets credit and on what terms. Use them to: screen new customers before offering payment terms, set appropriate credit limits based on risk scoring, monitor existing customers for early warning signs, and document your credit decisions for audit purposes. The goal isn't to avoid all risk—it's to take the right risks with eyes open.